Peru takes down the entire continent

Peru's president, Ollanta Humala, before a press conference at a local radio station in Lima Photo: REUTERS

Peruvian stocks continue to plummet after Ollanta Humala's win in the South American nation's presidential elections was announced late Sunday.

And now they're bringing the entire continent down.

Shares of Credicorp Ltd., the South American banking giant, took a sharp decline yesterday, at one point by as much as 16 percent.

Peru's vast metal deposits meant a burgeoning economy in the past two decades. Defeated presidential candidate Keiko Fujimori's father, Alberto Fujimori, oversaw economic expansion and integration into the world economy during the 90s.

He is also currently serving jail time for corruption and death squads designed to quell left-wing dissent.

Humala's presidential platform- albeit more moderate than his failed 2006 candidacy, when he was still a zealous disciple of Venezuela's Hugo Chavez- scared investors. The current Peruvian market crisis occurred in response to fears that Humala's administration will nationalize industry and drive up operation costs for international business.

Humala promised to revise free trade agreements, as well as increase the taxation of mining companies.

Peru is the second largest silver producing country after Mexico, producing well over 116 million ounces in 2010, according to The Silver Institute.